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igomit [66]
2 years ago
8

SuperSports Inc.reported pretax financial income of $260,000 for the year 2016. Taxable income of SuperSports is however differe

nt from its pretax financial income because of the items given below.
Depreciation deducted on the tax return is $40,000 greater than the depreciation charged on Income Statement.
Estimated Warranties Expenses charged to Income Statement is $30,000 but Warranties expenses deductible on tax return are $20,000
$3,200 appear in the income statement of SuperSports as Fines and penalties paid.
SuperSports received $ 6,000 interest from Tax Saving Municipal Bonds.
Enacted Tax Rate for the year 2016 is 30% and for 2017 is 35%

Required: For the year 2016, SuperSports Inc. requests you to:

Identify items of permanent and temporary difference from the information given
What items of temporary difference result in future taxable amounts and what items will result in future deductible amounts
Compute Taxable Income
Compute current income tax expense/Tax payable
Compute deferred taxes ( Deferred Tax Liability and Deferred Tax Asset)
Record journal entry for Income Tax Expense
Show how deferred taxes will be reported in the Balance Sheet.
Business
1 answer:
CaHeK987 [17]2 years ago
8 0
900009 It’s allisongiglio11
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Problem 12-04A The income statement of Kingbird, Inc. is presented here. Kingbird, Inc. Income Statement For the Year Ended Nove
barxatty [35]

Answer:

Cash Flow From Operating Activities

Cash Receipt from Customers                       $7,260,000

Cash Paid to Suppliers and Employees       ($6,294,700)

Cash Provided by Operating Activities            $965,300

Explanation:

Step 1 : Cash Paid to Suppliers and Employees Calculation

Cost of goods sold                                         $4,987,300

Add Operating expenses                                $1,120,500

Total                                                                 $6,107,800

Adjustments :

Depreciation expense                                        $95,300

Decrease in Inventory                                     ($536,700)

Increase in Prepaid Expenses                          $179,800

Decrease in Accounts Payable                        $345,700

Decrease in Accrued Expense Payable          $105,800

Cash Paid to Suppliers and Employees       $6,294,700

Step 2 : Cash Receipt from Customers Calculation

Sales revenue                                                $7,465,900

Less Increase in Accounts receivable          ($205,900)

Cash Receipt from Customers                      $7,260,000

4 0
3 years ago
Amanda Jones is a tax practitioner who is representing Sean and Diane Smith before the Wage and Investment Division of the Inter
algol13

Answer:B. Amanda must advise Sean and Dianne promptly of the inaccuracy and the consequences provided by Internal Revenue Code and Regulations.

Explanation:

Sean and Dianne have probably engaged Amanda at the end of the tax year and they are to face implications of the transactions as it relates to tax matters, Amanda is to provide them with legislation in relation to the matter to educate them in future tax transactions.

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3 years ago
Which of the following institutional investors most likely must spend a target percentage of the portfolio annually?
konstantin123 [22]

Answer: Endowments

Explanation:

The institutional investors that most likely must spend a target percentage of the portfolio annually is the endowments.

Endowment fund refers to the long term fund that is used for perpetual operations and usually set up by colleges or in hospitals

The fund then covers the expenses relating to provision of services for the students. A portion of the endowment is allowed to be use for every fiscal year.

7 0
2 years ago
There are a number goods that over time, for a variety of reasons, transition from being a normal good to an inferior good or fr
boyakko [2]

Answer:

d. the camry becomes an inferior good because the good is now perceived as lower in quality than a lexus

Explanation:

There are a number goods that over time, for a variety of reasons, transition from being a normal good to an inferior good or from being an inferior good to a normal good. One such example of a good is the Toyota Camry. In the 1980s, more income for a household usually resulted in more Camrys being purchased. However, today more Toyota Camrys are purchased by households that have experienced a reduction in income.

How could this happen?

<u>This could only have happened because of a change in perception in households over time. </u>

It is stated in the Scenario that ''today more Toyota Camrys are purchased by households that have experienced a reduction in income.''

<u>That means Toyota Camry has become an inferior good that is purchased more when income falls.</u>

<u>Hence, the only reason the scenario would have occurred is that the camry becomes an inferior good because the good is now perceived as lower in quality</u> than a lexus

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Provide an example of how an international company (such as Unilever or Mondelez International) changes its distribution channel
mezya [45]

Answer:

The examples of the given circumstances are provided below.

Explanation:

<u>Interpretations of how the international corporation (including such Unilever) was indeed changing the distribution platform</u>:

  • Unilever transforms this same distribution network to potential consumers as well as ensures immediate access includes a multitude of shareholder but instead everyday items.
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<u>Interpretations of how and why the International Corporation is changing targeted advertising</u>:

  • Unilever Advertisements have been created on the basis of the cultural values including its Country-Advertising Notifications besides Unilever impacts negatively on either the values of the people throughout order to determine if the project is uniquely equipped to address the requirements of the cultural identity as well as to raise the effectiveness of purchases.
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